The loan and interest maturity was extended… The delinquency rate of loans in won is rather higher

The financial authorities recently extended the loan maturity and interest repayment postponement for Corona 19 loans, taking the domestic bank’s delinquency rate to the lowest point.

However, at the end of January, the Korean Won loan delinquency rate at the end of January recorded 0.31%, up 0.04%p from the previous month (0.28%). This is due to the side-by-side increase in corporate and household loans. There are criticisms that the basis for extending the maturity of the financial authorities has weakened in just one month.

According to the Korean bank’s delinquency rate of loans in Korean won at the end of January announced by the Financial Supervisory Service on the 10th, the amount of delinquency of principal and interest for more than one month was 0.31%.

The amount of new delinquency incurred in January was 1.3 trillion won, an increase of 400 billion won from the previous month. On the other hand, the amount of overdue bonds was only 500 billion won, down 1.6 trillion won from the previous month.

Looking at each borrower, the corporate loan delinquency rate recorded 0.39%, the largest increase compared to the previous month (0.34%).

In particular, the delinquency rate for large corporate loans was 0.36%, up 0.09%p from 0.27% at the end of the previous month.

Accordingly, the Financial Supervisory Service explained that “delinquent bonds increased due to Ssangyong Motor’s application for rehabilitation procedures.”

The loan delinquency rate for SME loans was 0.40%, up 0.05%p from the end of the previous month, and the loan delinquency rates for small and medium-sized corporations and individual businesses rose slightly, recording 0.54% and 0.24%, respectively.

The household loan delinquency rate also showed an uptrend. Compared to the end of the previous month, it rose 0.01%p to 0.21%. The delinquency rate for mortgage loans was similar to the end of the previous month, and the delinquency rate for credit loans excluding the main charge was 0.37%, up 0.04%p from a month ago.

The delinquency rate of domestic banks is still low, but it is a common point of the financial sector that this soundness indicator is an’optical effect’. While the total amount of loans increased due to the low interest rate, the delinquency of principal and interest was a phenomenon that occurred as a result of the deferment of interest repayment.

Accordingly, there are concerns that the soundness indicators will deteriorate once the interest deferral measures are completed. In addition, there is not a small possibility that the delinquency rate will increase due to the influence of rising interest rates.

An official from the banking sector said, “The financial authorities extended the maturity and deferred interest despite voices of concern about poor loans, but the delinquency rate turned to an increase in one month.” “He said.